Critical Illness Cover will provide a tax-free lump sum payment on diagnosis of one of a range of specified illnesses. It is designed to help meet the extra costs that someone may incur if they are diagnosed with a serious illness such as, alterations to your home, private medical care or taking extra time off work. These payments do not need to be repaid if you subsequently recover as they are paid on diagnosis, regardless of the outcome.
The illnesses covered vary between providers but typically include:
- Most forms of cancer
- Heart attack
- Coronary artery disease requiring surgery
- Major organ transplant
- Multiple sclerosis
- Kidney failure
Some policies also pay out for
- Loss of limbs
- Many other serious illnesses
Not all conditions are covered, it is not based on your ability to work, but meeting the criteria set out on the inception of the policy. All providers differ on the following:
- Amount of conditions covered
- Criteria for claims against the most claimed upon illnesses
- Ability for cover to keep up with inflation
- Life element including or additional cost
- Additional benefits (various)
- Children’s cover
- Treatment of existing conditions and exclusions
It is vital that, when purchasing critical illness cover, that you get the most comprehensive policy available to you. Though a basic cover may seem like the wisest choice if you are on a budget but a more inclusive package would guarantee protection from a wider range of ailments and afflictions, such as more obscure and specific types of heart attack and cancer.
It’s possible to purchase critical illness cover with life assurance at an increased premium or as an individual cover. It’s important to have both Life and Critical Illness insurance to fully ensure that you are protected financially no matter what happens to your health.